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WASHINGTON, Jan. 18 /U.S. Newswire/ -- A group of video programming distributors, consumer protection organizations, media artists, and independent programmers today announced the formation of the Competition and Diversity Coalition on the Adelphia Transaction (CADCAT), to protect consumer interests by promoting a fair, open, and competitive video marketplace. The Coalition, which includes The America Channel, Center for Creative Voices in Media, DIRECTV, EchoStar, Mid-Atlantic Sports Network (MASN), Media Access Project, and RCN, is asking the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) to establish conditions in Comcast's and Time Warner's proposed acquisition of Adelphia Cable in order to achieve this result.
Comcast and Time Warner intend to divide Adelphia's subscribers between them and to swap some of their current subscribers. This will create concentrated regional "clusters," with one of the two companies as the single dominant cable operator, posing a clear risk to competition. In light of this threat, the Coalition urges that if the proposed merger is approved, the FCC and FTC should establish conditions that counter the anti-competitive effects. Such conditions should include enforceable guarantees to ensure that Comcast and Time Warner cannot discriminate against their competitors in distribution or content.
"This proposed merger will create monopoly level consolidation. And monopoly is fundamentally wrong for American consumers. When competitors are denied access to critical content it means viewers either lose access to programming or are forced to pay higher prices. Both outcomes should be unacceptable," said Andrew Jay Schwartzman, Media Access Project.
"Competition thrives and consumers benefit when they have choices. Time and again, even while the Adelphia transaction has been under government review, Comcast and Time Warner have used their regional market dominance to deny DBS customers irreplaceable, hometown sports programming," said Susan Eid, VP, Government Affairs for DIRECTV. "The FCC and the FTC must maintain consumer choice in the video marketplace by ensuring all competitors have fair-market access to local sports."
"Comcast and Time Warner have a track record of anti- competitive behavior. They have imposed discriminatory pricing for high-definition programming. They have created deals that practically exclude competitors from carrying critical programming, including live sports. And now they are trying to establish monopoly level concentration in dozens of markets across America," said David Moskowitz of EchoStar. "This clear pattern is proof that imposing procompetition conditions on this merger is the only way to preserve consumer choice and protect the public interest."
"As a regional sports network, we have witnessed first-hand Comcast's single-minded desire to lock up local programming. Rather than compete, Comcast refused to air Nationals games to millions of fans throughout the region," said Russell Smouse, MASN. "The members of CADCAT are united in our efforts to protect competition and preserve the right to root for our home team without giving up the right to subscribe to the video service provider of your choice." Richard Ramlall of RCN Corporation added: "These companies have in the past, threatened to use their control over must-have programming to deny consumers choice and lock out competition. If these transactions are approved and Comcast and Time Warner are allowed to become even more dominant in the marketplace, it is imperative that the FCC and FTC impose conditions to protect competition for the benefit of consumers."
Jonathan Rintels of the Center for Creative Voices in Media added: "Without significant conditions attached, the proposed purchase of Adelphia by Comcast and Time Warner Cable will solidify their gatekeeper power over television, preventing not just their own subscribers but all Americans from accessing independent and diverse voices and viewpoints. It will make a mockery of Congress's goal of a 'level playing field' in cable that will not unfairly impede the flow of video programming to consumers."
Doron Gorshein of The America Channel stated: "Clearly, competition in the content space, particularly from independent channels, has been stifled. The results include adverse effects on industry, consumer choice, consumer pricing, and the national discourse. The FCC and FTC now have an historic opportunity to address these market dysfunctions which play out to the detriment of all Americans."
The creation of regional monopolies will give Comcast and Time Warner both the means and the incentive to structure exclusive arrangements for the broadcast of "must-have" content, particularly regional sports. The acquisition also will enable them to deny competitors access to affiliated programming; act as gate-keepers for independent programmers; and make it more difficult for local authorities to ensure fair pricing, quality customer service, and other important public interest requirements.
The strategy to control regional sports programming has intensified in recent months. During the FCC's review of the Adelphia transaction, Time Warner announced partnerships with three new regional sports networks: the Charlotte Bobcats, the New York Mets (along with Comcast), and most recently, the Cleveland Indians. In Charlotte, Time Warner has denied all competitors access to games; in New York, they are charging unprecedented rates; and in Cleveland, negotiations included carriage throughout Ohio as well as ownership interest in the network.
The Competition and Diversity Coalition on the Adelphia Transaction (CADCAT) includes a diverse group of organizations, who are working together in order to preserve and improve competition in the video marketplace.
CONTACTS
DIRECTV, Susan Eid, VP Govt. Relations, 202-715-2412
RCN, Richard Ramlall, 703-434-8408
MASN, David Frederick, Esq., 202-326-7951
EchoStar, Marc Lumpkin, 303-723-2010
Media Access Project, Andrew Jay Schwartzman, 202-232-4300
Center for Creative Voices in Media, Jonathan Rintels, 202.448.1517
The America Channel, Doron Gorshein, 407-333-3031
About Media Access Project:
Media Access Project is a 33 year-old non-profit public interest telecommunications law firm which defends the First Amendment rights of civil rights, civil liberties, consumer, labor, religious and other citizens groups before the FCC and the courts.
About DIRECTV:
DIRECTV, Inc. is the nation's leading digital television service provider with more than 15 million customers. DIRECTV and the Cyclone Design logo are registered trademarks of DIRECTV, Inc. DIRECTV (NYSE: DTV) is a world-leading provider of digital multichannel television entertainment services. DIRECTV is approximately 34 percent owned by News Corporation.
About EchoStar:
EchoStar Communications Corporation (NASDAQ: DISH) serves more than 12 million satellite TV customers through its DISH Network, the fastest growing U.S. provider of advanced digital television services in the last five years. DISH Network offers hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service. Visit EchoStar's DISH Network at www.dishnetwork.com or call 1-800-333-DISH (3474).
About RCN Corporation
RCN Corporation, http://www.rcn.com, is one of the largest facilities-based competitive providers of bundled cable, high- speed internet and phone services delivered over its own fiber- optic local network to residential customers in the most densely populated markets in the U.S. RCN Business Solutions is a growing business that also provides bulk video, high-capacity and voice services to business customers. RCN provides service in the Boston, New York, Eastern Pennsylvania, Washington, D.C., Chicago, San Francisco and Los Angeles metropolitan markets. RCN also owns 49 percent of Megacable, one of the largest cable companies in Mexico. (RCNI-G)
About MASN:
MASN is the television home of the Washington Nationals in the mid-Atlantic region. During the 2005 season, MASN produced and distributed 156 Washington Nationals baseball games, and will continue to do so for years to come.
About CCVM:
The Center for Creative Voices in Media is a nonprofit formed by creative artists to preserve in America's media the original, independent, and diverse creative voices that enrich our nation's culture and safeguard its democracy. Our Board of Advisors includes many prominent Oscar, Emmy, Tony, Peabody, and other award-winning media artists.
About The America Channel:
The America Channel is an independently-owned new cable programming network set to launch in 2006. The America Channel will explore and celebrate America, its communities, real heroes, and ordinary people who accomplish the extraordinary.
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